These 7 stocks maintained consistency in PAT margin, RoE, RoCE in last 3 fiscals

Numerous factors influence the price performance of a stock, the importance of robust fundamentals play a dominant role in determining the extent of re-rating.

Ritesh Presswala

August 29, 2018 / 10:29 IST

As India’s benchmark indices continue their record run, investors, more often than not, have a tough time shortlisting names other than blue chips.
Though numerous factors influence the price performance of a stock, the importance of robust fundamentals plays a dominant and critical role in determining the extent of re-rating.

Therefore, a glance at some good performers merits attention. While one may look at a business from various perspectives, earnings growth is not something that can be overlooked.

In this context, we analysed BSE universe companies that meet the following conditions:

Profit Margin (PAT) margin has been maintained at a minimum of 10 percent in each of the previous 3 fiscals while simultaneously being on a consistent uptrend during the period.
Return on Equity (RoE) and Return on Capital Employed (RoCE) of at least 20 percent have been achieved every year since the last 3 years.

Only seven stocks (primarily mid and small caps) passed the above filters. These include Dabur India, Jenburkt Pharmaceuticals, Mayur Uniquoters, Multibase India, Orient Refractories, SNL Bearings and Solar Industries.

PAT Margin 1